When the Economist asked its readers if they expected 2011 to be a better year for the global economy than 2010, 72 per cent of its readers responded yes. That’s certainly good news, if it bears out. Certainly, some economies are looking strong and set for rapid growth. The chart below predicts the fastest and slowest growing economies of 2011.
In non-economic news, The Economist’s predictions include:
- Iraq will remain a dangerous place for Iraqis and outsiders alike. Smaller businesses – who can’t afford private security – will stay away. Oil production should return to pre-invasion levels of 2.5m barrels a day but will remain far off the target of 8m barrels a day.
- There is reason for hope in the Middle East peace negotiations as Barack Obama makes it a priority for 2011, and Israeli and Palestinian leaders agree to attempt to reach an agreement within the year. With support from Egypt and Jordan, this could finally be a year of peace.
- Possible contenders for the Republican nomination include: Sarah Palin, obviously, Jeb Bush, Mitt Romney, Tim Pawlenty, Haley Barbour or Mitch Daniels (they’re friends and only one will throw his hat in the ring) and Newt Gingrich.
- With increased funding and vaccine breakthroughs, 2011 may be the year that malaria is eradicated.
- Latin America will achieve growth of between 4 and 5 per cent and remain stable and democratic.
- Forget the BRICs, the emerging markets that will provide fantastic growth along with real innovation and creativity include: Indonesia, South Africa, Egypt, Algeria, Botswana, Libya, Mauritius, Tunisia, Turkey, Saudi Arabia, Mexico and Vietnam.
The Economist, 2011 outlook